Final salary change to CARE LGPS

Moby

I'm aware LGPS is changing to a career average scheme and I'm just a bit confused about how things are worked out from now on for those of us who have been in the old schemes. Does the pension I will get for my years of being in the scheme prior to April 2014 still amount to a final salary pension and if so how is that worked out proportionally?

hyubh

Moby wrote: »

Does the pension I will get for my years of being in the scheme prior to April 2014 still amount to a final salary pension

Yes.

and if so how is that worked out proportionally?

Say you started on 1 April 2000, and ultimately left on 31 March 2024 on an actual salary of £20,000. Throughout you worked part time, specifically three days out of five a week, so ended on a whole-time equivalent salary of 20000 x 5/3 = £33,333. As such, your LGPS pension will be calculated in three parts:

1. Membership from April 2000 to March 2008 (= 8 years calendar membership, 8 x 3/5 = 4.8 years reckonable membership) will produce final salary benefits at 1/80 for the pension and a lump sum of 3/80

2. Membership from April 2008 to March 2014 (= 6 years calendar membership, 6 x 3/5 = 3.6 years reckonable membership) will produce final salary benefits at 1/60 for the pension and no automatic lump sum

3. Membership from April 2014 to March 2024 will produce CARE benefits at 1/49 for the pension (no automatic lump sum), with the pension earned during 2014/15, 2015/16, ... 2022/23 all uprated by CPI

As such, the pension earned would be calculated as...

1. £33,333 x 1/80 x 4.8 = £2,000 (with a lump sum of 2000 x 3 = £6,000) PLUS

2. £33,333 x 1/60 x 3.6 = £2,000 PLUS

3. Your actual pensionable pay for 2014/15 x 1/49 x relevant CPI factor PLUS your actual pensionable pay for 2015/16 x 1/49 x relevant CPI factor PLUS your actual pensionable pay for 2016/17 x 1/49 x relevant CPI factor PLUS...